On July 11, the Wall Street Journal published a story titled, “How Energy-Rich Australia Exported Its Way Into an Energy Crisis.”
We applaud the Wall Street Journal on their story on how the Australian government failed the public and their manufacturing sector by failing to put consumer safeguards in place. Foreign consumers benefited from LNG exports, while Australian consumers saw natural gas prices skyrocket. Shortages forced power plant outages and manufacturers were forced to cut back production or shutdown. Manufacturers continue to leave the country, resulting in the loss of good paying jobs.
The U.S. is following the same failed policy. There are no consumer protections in place on U.S. LNG exports. Currently, a breathtaking volume equal to 71 percent of 2016 U.S. natural gas supply has been approved for exports.
The Energy Information Administration’s (EIA) Annual Energy Outlook (AEO) 2017 forecasts that cumulative demand in 2050, only 33 years away, indicates that 56 percent of all U.S. natural gas resources in the lower 48 states will be consumed. Natural gas is unique and a valuable resource for manufacturing jobs and investment, for which there is no substitute.
The U.S. still has time to put common-sense consumer safeguards in place now.